---

This morning, oil prices have traded sideways in a narrow range. While the WTI crude has tested its second support, the Brent hardly changed. Only the ICE G.Oil has succeeded to breach its first resistance in, testing the second resistance. This uptrend has been based mainly on technical factors, as the euro gained some ground in the morning supporting an upward movement.

Friday morning, oil futures in London and New York retreated, testing their downward potential. The steady euro limited losses at that time but selling pressure remained, given some profit taking ahead of the weekend and the renewed discussion about whether to release strategic oil reserves or not. In the early afternoon, the WTI crude marked more gains than futures at ICE did. The US benchmark blend breached first resistance lines. Market participants reported some transactions that were coined by the expiry of the WTI crude's September contract tomorrow. Positive US economic data made the euro lose some ground in the afternoon, triggering some technical selling orders at oil markets. While the WTI crude was able to stick to its gains, ICE G.Oil and Brent have breached their first supports. The API's bearish statistics regarding oil demand favored the brief downward movement. In the evening, Maria van der Hoeven, head of the IEA, said that currently there was no need to release strategic oil reserves as the market was sufficiently supplied. ICE futures thus have pulled back from their lows, settling with but slight losses. The WTI crude has extended its gains, however, hitting a new 3-month high at night.

ICE Gasoil contract for September delivery settled at 979.75 dollars on Friday. This was 2.50 dollars above Thursday's settlement. With some 44,900 contracts the traded volume was below average.

The stochastic indicator is slightly bullish at the WTI charts, but is bearish for the Brent and neutral for the G.Oil. The market is still overbought, even though the upward channel that has formed in June is still intact. Technical analysts assess the situation as neutral this morning, as there are no clear signs for ICE and NYMEX. The WTI crude contract with September delivery is going to expire tomorrow, leaving it more volatile.

U.S.

Nymex access gaining: Oil futures have hardly changed in East-Asia and on Globex electronic trading platform this morning. As news and other impulsions were lacking market players remained cautious. The traded volume is below average, with investors focusing on the WTI crude, whose September contract will expire tomorrow. Market participants look ahead to the performance of stock and forex markets and the Chicago Fed's National Activity indicator for July.

Houston (ex-wharf indications 17-8)

380cst $658
180cst $693
MGO $1008

New Orleans (ex-wharf indications 17-8)

380cst $662
180cst $697
MGO $1020

Singapore (closed due to a public holiday, delivered indications of 17th Aug)

Crude is slowing, but not yet turning with WTI +$0.02. Singapore paper is turning bearish with -$1.95 for 180cst and -$1.45 for 380cst for Sep, and for Oct 180 cst -$1.50 and 380cst -$1.50 with MGO contracts Sep -$0.15 and Oct -$0.10. The cargo market is back up again, gaining with 180cst +$11.35, 380cst +$11.04 and MGO +$2.17.

High premiums for prompt deliveries.

380 cst $670
180 cst $681
MGO $970

Fujairah (delivered indications 17-8)

380cst $680
180cst $698
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA continues with the bullishness. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 654
(1.0 %) :$ 713
180cst: $ 693
(1.0 %):$ 756
MGO 0.1%S: $980